Hiring EPG became a clever move for an industrial maker
Situation
A leading industrial manufacturer sourcing approximately US$25 million annually from China relied on hundreds of fabricated and machined components, including sheet metal fabrications, CNC machining, stampings and welded assemblies. Management challenged the procurement organization to significantly improve profitability by reducing direct purchasing costs without compromising quality, delivery performance or supplier reliability.
To accelerate the transformation, the company partnered with EPG to strengthen its procurement organization with experienced sourcing professionals and local supplier expertise across Asia.
EPG Contribution
Working as an integrated extension of the client’s procurement team, EPG supported both strategic and operational procurement activities across key manufacturing categories.
Our responsibilities included:
• Strategic supplier relationship management and supplier development.
• Cost reduction through value engineering and design-to-cost initiatives.
• Strategic sourcing and competitive supplier benchmarking.
• Commercial negotiations covering pricing, payment terms and MOQ optimization.
• Supplier quality management, including QA and QC activities.
• Performance management through procurement KPIs and supplier scorecards.
• Continuous identification of new sourcing opportunities and supplier innovations.
• Daily procurement execution supporting engineering, purchasing and operations teams.
Building procurement capabilities that delivered $5M in savings
By combining local supplier expertise with strategic procurement execution, EPG helped the client build a stronger supplier network while delivering substantial financial improvements.
Key outcomes included:
• US$3 million in realized purchasing savings within the first 10 months.
• An additional US$2 million in savings delivered over the following eight months.
• Approximately 20% reduction in purchasing costs across targeted categories.
• Improved supplier performance through structured KPI management.
• Better commercial terms, payment conditions and purchasing leverage.
• Increased procurement transparency and stronger management reporting.
• A scalable procurement model supporting continued international growth.
Client Confidentiality
To protect our clients’ commercial interests and confidentiality, company names have been omitted. All business cases are based on actual client engagements and measurable procurement results.
